The JPMorgan position was amassed by a
trader in the bank’s London office named Bruno Iksil — called the
“London Whale” for the large positions he was accumulating in the
Investment Grade Series 9 10-Year Index CDS.

Weinstein, a renowned CDS index arbitrageur who launched Saba in
2009, in early February recommended the index, which tracks a basket of
US corporate bonds.

“They are very attractive” and can be bought
at a “very good discount,” said Weinstein, a former Deutsche Bank
proprietary trader, speaking at the Harbor Investment Conference on Feb.
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